Far from being mired in the summer doldrums, precious metals markets appear to be on their way to making this summer one for investors to celebrate. $20+ silver and new record highs for gold are both well within reach.
Even as the big tech stocks that make up the Nasdaq are posting rip-roaring gains, the best performing sector of 2020 has actually been the gold miners. The HUI gold mining stock index is up 30% year to date – and up over 90% since bottoming in March.
Investors who bought just about any stock market sector near the climax of the panic selling have since been able to make big gains. But valuations are now becoming stretched while the earnings picture for most companies remains shaky.
Perhaps equities will be able to ride the rising tide of liquidity provided by the Federal Reserve to still higher heights. But Michael Howell, the CEO of Crossborder Capital, urged CNBC International viewers to consider diversifying into gold.